Download - New Orleans City Park Improvement Association · 2020-05-20 · NEW ORLEANS CITY PARK IMPROVEMENT ASSOCIATION Management's Discussion and Analysis, continued June 30. 2012 and 2011

< ^ t ? ^ ^

NEW ORLEANS CITY PARK IMPROVEMENT ASSOCIATION

FINANCIAL STATEMEIVTS AND SCHEDULES

FOR THE YEARS ENDED JUNE 30,2012 AND 2011

WITH INDEPENDENT AUDITORS' REPORT THEREON

Under provisions or' state lav; this report is a public document Acopy of the report has been submitted to the entity and other appropnate public officials The report is available for public inspection at the Baton Rouge office of the LegislativeAuditor and, where appropnate, at the office of the parish clerk of court

Release Date MAY 2 2 2013

i i ^ A i Postlethwaite aSSaM & Netterville

A ProlcsMonol Accounting Corporation

.''\A"pi.pa com

NEW ORLEANS CITY PARK IMPRO\TMENT ASSOCIATION

FINANCIAL STATEMENTS AND SCHEDULES

FOR THE YEARS ENDED JUNE 30,2012 AND 2011

WITH INDEPENDENT AUDITORS' REPORT THEREON

fEW ORLEANS CITY PARK IMPROVEMENT ASSOCIATION

TABLE OF CONTENTS

Schedule Page

Independent Auditors' Report 1 - 2

Management's Discussion and Analysis 3-11

Statements of Net Assets 12

Statements of Changes in Net Asseu 13

Statements of Cash Flows 14

Notes to Fmancial Statements 15 - 25

Required Supplemental Information - Schedule of Funding Progress for Louisiana's State OPEB Plan 1 26

Supplemental Information - Schedules of Operating Expenses 2 27

i J S j A i Postlethwaite ^CJKM & Netterville

A^i> «rrtdC'fite> in Printipol^"! "; j ol:h« Cn '« : 5 Rwi

w^-w ciicpa cam

Independent Auditors' Report

The Board of Commissioners New Orleans City Park Improvement Association

We have audited the statements of net assets ofthe New Orleans Cit> Park Improvement Association (the Park)asof June 30, 2012 and 2011, and the related statements of changes m net assets and cash flow's for the years then ended These financial statements are the rcsponsibilit)' of the Park's management Our responsibility is to express an opinion on these financial statements based on our audits

We conducted our audits in accordance witli auditing standards generally accepted in tlie United States of America and Government Auditing Standards, issued by the Comptroller General of the United States Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement An audit includes consideration of intemal control over financial reporting as a basis for designing audit procedures that are appropnate tn the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe Park's mtemal control over financial reporting. Accordmgly, we express no such opmion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluaung the overall financial statement presentauon We believe that our audits provide a reasonable basis for our opmion

b our opinion, the fmancial statements referred to above present fairly, in all material respects, the financial position ofthe Park as of June 30, 2012 and 2011, and the results of its operations and its cash flows for the years then ended in conformity with accounting pnnciples generally accepted in the United States of America

In accordance with Govemment Auditing Standards, wc have also issued our report dated December 17, 2012 on our consideration of the Park's internal control over financial reporting and our tests of its compliance with ccrtam provisions of laws, regulations, contracts, and grant agreements and other matters The purpose of that report is to descnbe the scope of our testing of mtemal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on intemal control over financial reporting or on comphance. That report is an integral part of an audit performed in accordance with Govemment Auditing Standards and should be considered in assessing the results of our audit

Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 3 through 11 and the Schedule of Funding Progress for Louisiana's State OPEB Plan on page 26 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial slaiements in an appropnate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing

-1 -

JOth Floui - Energy Ce.'itie • i lOO Poycira:. Street • >kvJ O lenns. lA 70io3-30r;n • Tel 501 o69 ?97S

Ort: Galena Blvu.Sjiic 2100 • V1etd:riLr U'A 7f.l001 • Te! b0483:'b990 • Fax ^04834 3609

standards generally accepted in the United States of America, which consisted of mquu-ies of management about the methods of preparing the mfonnation and comparing the information for consistency with management's responses to our inquiries, the basic fmancial statements, and other knowledge we obtained dunng our audit ofthe basic financial statements We do not express an opinion or provide an> assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance

Our audits were made for the purpose of fonning an opinion on tlie financial statements taken as a whole The supplementary' information included in the Schedules of Operating Expenses on page 27 is presented for purposes of additional analysis and is not a required part of the financial statements The supplementary information is the responsibility' of management and was derived from and relate directly to the underlying accountmg and other records used to prepare the financial statements The information has been subjected to the auditmg procedures applied m the audit ofthe financial statements and certam additional procedures, including comparing and reconciling such infonnation directly to the underlying accounting and other records used to prepare the fmancial statements or to the fmancial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all matenal respects in relation to the financial statements as a whole

^ ,

New Orleans, Louisiana December 17, 2012

P&N


Management's Discussion and Analysis, continued

June 30. 2012 and 2011

This section of the New Orleans City Park Improvement .Association (the Park) financial report presents a discussion and analysis ofthe Park's financial performance dunng the year ended June 30, 2012 and 2011 Please read it in conjunction with the Park's financial statements, which follow this section.

FINANCIAL HTGHIJGHTS

2012 Highlights

The Park's net assets represent approximately 92% of total assets of approximately $56 8 million at June 30, 2012 At June 30, 2011, the Park's net assets approximated 90% of total assets of approximately S52.S milhon.

The Park's increase in net assets was approximately $4.4 million for the year ended June 30,2012 as compared to an mcrease of approximately $8 1 million for the year ended June 30, 2011 In addition, the Park's cash used in operating activities was approximately SL3 million in 2012 as compared to cash used m operatmg activities of approximately $1 1 million m 2011.

2011 Hiehhehts

The Park's net assets represent approximately 90% of total assets of approxunately 552.8 million at June 30, 2011 At June 30. 2010, the Park's net aisels approximated 90% of total assets of approximately $43 7 million.

The Park*s mcrease m net assets was approximately $8 1 milbon for the year ended June 30,2011 as compared to an increase of approximately $6 0 million for the year ended June 30, 2010 In addition, the Park's cash used m operating activities was approximately $1 1 million m 2011 as compared to cash used in operating activities of approximately 52 5 million in 2010

OVERMEW OF THE FINANCLO. STATEiVIENTS

This fmancial report consists of four parts; management's discussion and analysis (this section), the baste financial statements, the notes to tlie financial statements, and otlier supplementary information

The fmancial statements provide both long-term and short-term information about the Park's overall financial statu*: Hie financial statements also mclude notes that explain some ofthe information in the fmancial statements and provide more detailed data. The statements are followed by a section of other supplemental infonnation that furdier explains and supports the information in the financial statements

3-

NEW ORLEANS CITY PARK IMPROVEMENT ASSOCU.TION


June 30.2012 and 2011

The Park's financial statements are prepared on an accrual basis in conformity' with accounting pnnciples generally accepted in the United States of Amenca (GAAP) as apphed to govemmental units. Under this basis of accounting, revenues are recognized in tlie period in which tliey are earned, expenses are recognized in the period in which they are incurred, and depreciation of assets is recognized in the Statements of Changes in Net Assets. All assets and liabihtics associated with the operation ofthe Park are mcluded in the Statements of Net Assets

The Statements of Net Assets reports the Park's net assets Net assets, the difference between the Park's assets and liabilities, are one wa>' to measure the Park's fmancial health or position. The increase in the Park's net assets in 2012 over 2011 is an indicator of its positive financial health.

FINANCLiL ANALYSIS OF THE PARK - 2012

Net Assets

The Park's total net assets at June 30, 2012 increased 9% to $52 0 million (See Table A-1) Total assets increa.sed 9% to approximately $56 8 million, and total liabilities decreased 5% to approximately $4.7 million llie increase in net assets is mainly attnbutable to the purchase of property and equipment funded through public and private capital contributions.

NEW ORLEANS c r

Assets

Current assets Investments Capital assets

Total assets

Current liabiliiies Other postretirement benefits

Total Uabilities

Net assets-Invested m capital assets, net Rcstriclcd Unrestricled

Total net assets

TABLE A-l rV PARK IMPROVEMENT ASSOCU Statements of Net Assets June 30,2012 and 2011

2012 2011

S

S

$

4,796,925 $ 2,140,742

49,816,820

56,754,487 $

3,000,870 1,725,900 4,726.770

49,816.820 2367.005 (156,108)

52.027,717

56,754,487 $

4.668,782 U71,828

46,853.157

5Z793,767

3,143,675 2,050,575 5 J 94,250 .

46,853,157 1383,387 (837,027)

47,599,517

5Z793,767

TION

Increase (Decrease) •

S 128,143 868,914 '

2,963,663 I

S 3,960,720

(142,805) (324,675) (467.480)

2,963,663 783,618 680,919

4,428,200

$ 3 i^ .720

NEW ORLEANS CITY PARK IMPROVEMENT ASSOCL4TION

Management's Discussion and Analysis, conunued

June 30. 2012 and 2011

Total current assets increased by $128,000 due primarily to an increase in cash and invesunents of $317,000 that was partially offset by a decrease m receivables of $196,199 at June 30, 2012 compared to June 30,2011. Capital assets mcrcascd due to construction of the new Festival Ground's and other improvements throughout the Park. This increase was partially offset by the continued depreciation of the capital assets Included m the federal receivable at June 30, 2012 and 2011 is approximately $527,000 and $106,000, respectively, which is for construction ofthe new Festival Grounds funded through a Comtnunily Development Block Grant from the Housing and Urban Development through the Cit>' of New Orleans

Total liabilities decreased by $467,000 prtmanly due to change in estunate, which resulted m a $325,000 decrease in the actuarial accrued liability (AAL) on the Other Post Employment Benefits (OPEB) liability. In addition, current liabilities decreased by approximately $143,000 and combined with the aforementioned $128,000 increase in current assets allowed working capital to improve by $271,000. Higher revenues, ^hich outpaced the increase in operaUng expenses accounted for the improvement in the Park's liquidity.

Net assets grew by approximately $4.4 million as explained in the following section. Net assets invested in capital assets reflect fixed assets, net of accumulated depreciation, net of debt balance for capital leases Restricted assets reflect assets restricted by a donor and/or contractual agreements for specific purposes.

Changes in Net Assets

The change in net assets for the year ended June 30, 2012 was an increase of approximately $4.4 milhon compared to an increase in net assets of approximately $8 1 million for the year ended June 30, 2011 Total operatmg revenues mcrcased by $1.5 million or 16% to Sll 0 million. Operations were strong across the Park, including an increase of $1 1 million in Catering, which benefited from the opening ofthe Arbor Room at Popp's Fountain in October of 2011. In addition, golf, horticulture and tennis operations experienced a combined increase of over 5446,000 Total operating expenses increased by $920,000 or 7% to approximately $14 9 million Higher depreciation from the increased number of completed fucililic:> and improvements accounted for $259,000 ofthe increase As a result of higher sales volumes, expenses increased by a combined $920,000 in catering, golf, horticulture and tennis operations. These increases were partially offset by a decrease m post renrement benefits expense of $669,000 based on a change in estimate ofthe actuarial accrued liability The changes m net assets are detailed in Table A-2, operatmg expenses are detailed in Table A-3.

Net non-operating income and expenses decreased $1 5 million or 53% to approximately S4 2 million Contnbutions by others to the endowment held m trust for the Park at the Greater New Orleans Foundation increased $797,000 to $805,000. In addition, the Park received insurance proceeds from the State of Louisiana Office of Risk Management in the amount of $801,606 related to damage claim allocation from Hurricane Katnna.

Capital contnbutions decreased by S5 7 million or 58% due to a large number of projects that were completed in (he year ended June. 30, 2012. Federal capital contnbutions totaled $2.2 million were mostly from HUD CDBG funding ofthe constmction ofthe new Festival Grounds State and Cit>' of

NEW ORLEANS CITY PARK IMPROVEMENT ASSOCUTION

Management's Discussion and Analvsis. continued

June 30. 2012 and 2011

New* Orleans capital contributions were $577,000 and 422,000, respectively The remaining $1.0 million of capital contributions were from private sources, including $647,000 from the Fnends of City Park.

TABLE A-2 NEW ORLEANS CITY PARK IMPROVEMENT ASSOCLVTION |

Statements of Changes m Net Assets For the year ended June 30,2012 and 2011

Operating Revenues Amusements and other events Conccssbns, catering, and restaurant Golf operatbns Horticulture, grounds and pavihon Other

Total operating revenues

Operating expenses: Amusement and other events Concesskins, catering, and restaurant Golf operatbns General park Depreciation HortKulture and grounds Other postreurement benefit expense Other

Total operating expenses

Operating k>ss

Nonopcratmg mcome

Capital contn"butiDns

Changes in net assets

Total net assets, beginning ofthe year

Total net assets, end ofthe year

2012

S 3,700,536 3,813,133 1,610,764

671,410 L161,864

10,957,707

1,814,407 2,950,270 1341,074 4,094,403 3,181,606

861,015 (324,675) 989,741

14,907,841

(3,950,134)

4,199,107

4,179227

4,428,200

47,599,517

S 52,027,717

$

S

2011

3,727,371 2,702,718 1,448,729

653,986 877,717

9,410^21

1,685,000 2^14390 1,235,617 3,946,964 2,922,588

751,876 344^06 787,007

13,987,948

(4^77,427)

2,739.063

9,897,253

8,058,889

39,540,628

47,599,517

Increase (Decrease)

S (26,835) 1,110,415

162,035 17,424

284,147 1,547,186

129,407 635,880 105,457 147,439 259,018 109,139

(669,181) 202,734 919,893

627;293

1,460,044

(5,718,026)

(3,630.689)

8,058,889

$ 4,428,200

- 6 -

NEW ORLEANS CITY PARK EVIPROVEMENT ASSOCUTION

Manauement's Discussion and Analysis, continued

June 30. 2012 and 2011

TABLE A-3 NEW ORLEANS CITY PARK IMPROVEMENT ASSOCLVTION

Schedule of Operatmg Expenses For tlie years

PayroD Cost of goods soU Contract labor Depreciation PavToll benefits Utilities Repairs and maintenance InsuraiKe Other postretirement benefits Other


expense

ended June 30,2012 and 2011

2012

$ 4,779,685 S 1,456,796

348,935 3,181,606

678,325 543309 689,728 278,971

(324,675) 3^75.161

S 14,907,841 $

20U

4,291,941 1,135305

269,734 2,922388

597,785 536,938 658,521 272,583 344,506

2,958,047

13587,948

1

Increase (Decrease)

$

S

487,744 321,491

79,201 259,018

80340 6371

31,207 6388

(669,181) 317.114

919,893

FENANCLU. ANALYSIS OF THE PARK - 2011

Net Assets

The Park's total net assets at June 30, 2011 increased 20% to $47 6 million (See Table A-4) Total assets mcreased 21% to approximately $52.8 million, and total liabilities mcrcased 25% to approximately $5 2 million The increase in net assets is mainly attnbutable to the purchase of property and equipment funded through public and private capital contributions

Total current assets decreased by $592,000 due primarily to the decrease m the receivable from the Fnends of City Park at June 30, 2011 compared to June 30, 2010. Capital assets increased due to construction ofthe new facilities for admrnistration and tennis and otlier unprovements throughout the park. This mcrease was partially offset by the continued depreciation ofthe capital assets Included in the federal receivable at June 30, 2011 and 2010 is approximately S314,000 and $273,000, respecuvely, which is for FEMA project worksheets that are obligated as ofthe report issuance dale

Total liabilities increased by $1 0 million prmianly due to increases in due to other govemments for the reimbursement to the State of the Park's share of construction costs and insurance proceeds applied to paid FEMA project worksheets m the amount of $314,000 and $393,000, respectively. Included in deferred revenue at June 30, 2011 and 2010. is $27,561 for FEMA public assistance grants that have been funded to the Park, however, the Park has not expended the funds



June 30. 2012 and 2011

Net assets grew by approxunately $8.1 million as explained in the following section Net assets invested in capital assets reflect fixed assets, net of accumulated depreciation, net of debt balance for capital leases Restricted assets reflect assets restricted by a donor and/or contractual agreements for specific purposes.

TABLE A-4 NEW ORLEANS CITY PARK IMPROVEMENT ASSOCIATION

Statements of Net Assets June 30,2011 and 2010

Assets

Current assets Investments Capital assets

Total assets

Current liabilities Insurance payable

Total liabilities

Net assets. Invested in capital assets, net Restricted Unrestrkxted Total net assets

2011 201O

4.668,782 1,271,828

46,853,157

S 5,260,448 1,082,012

37364,723

3,143.675 2,050375

2,460,486 1,706,069

5,194,250

46,853,157 1383387 (837,027)

4,166355

37364,723 1,272341

903364 47399317 39,540,628

Increase (Decrease)

(591,666) 189,816

9,488,434

$ 52,793,767 $ 43,707,183 $ 9,086384

683,189 344306

1,027,695

9,488.434 310,846

(1,740391)

8,058,889

$ 52,793,767 S 43,707,183 S 9,086384

Changes in Net Assets

The change in net assets for the year ended June 30, 2011 was approximately an increase of $8 1 million compared to an increase in net assets of approximately $6 0 milhon for the year ended June 30, 2010 Total operating revenues increased by $1.9 million or 25% to $9.4 million Operations were strong across the Park, including an increase of $1.1 million in Amusements, concerts and other events. In addition, golf, catering, and restaurant operations experienced a combined increase of over $500,000 Total operatmg expenses mcreased by $1 6 million or 13% to approximately $14 0 million. Higher depreciation from the increased number of completed facilities and improvements accounted for $644,000 of the increase. As a result of higher sales volumes, expenses increased by a combined $606,000 in amusements and other events, golf, catering and restaurant operations. The changes m net as<$ets are detailed m Table A-5; operating expenses are detailed in Table A-6

NEW ORLE.\NS CITY PARK IMPROVEMENT ASSOCL4TION

Manacement's Discussion and Analviis. continued

June 30. 2012 and 2011

TABLE A-5 NEW ORLEANS CITY PARK IMPROVEMENT ASSOCLVTION

Statements of Changes in Net Assets For the years

Operating Revenues. Golf operations Amusements and other events

ended June 30,2011 arxl2010

2011

$ 3,727371 2,702,718

Concessbns, catering, and restaurant revenue 1,448,729 Horticulture, grounds and pavilk>n Other

Total operating revenues

Operating expenses Golf operations General park

653,986 877,717

9,410,521

1,685,000 2314390

Casino, catering, and restaurant expense 1335,617 Amusement and other events Deprecatbn Hortculture and grounds Hurricane Katnna / Gustav bss Other postretirement benefit expense Other


Operating loss

Nonoperating mcome

Capital comn'butions

Changes m net assets

Total net assets, begmrung ofthe year

Total net assets, end of the year

3,946,964 2,922388

751.876 230

3443O6 786.777

13,987i>48 (4377.427)

2,739.063

9,897,253

8,058,889

39340.628

$ 47399317

$

=L

2010

2,648,620 2,434.757 1,186.101

647,242 636.191

7352,911

1364318 2,145.608 1,118^69 3,644.740 2.278,103

796,633 23303

351356 676,051

12398,781

(4,845.870)

4,031,789

6,830345

6,016,464

33324,164

39340,628

Increase (Decrease)

S 1,078,751 267.961 262,628

6.744 241326

1,857.610

320,482 168.782 117348 302,224 644.485 (44,757) (23;273) (6,850)

110,726 1389,167

268.443

(1292,726)

3,066,708

2,042,425

6,016,464

S 8.058,889

NEW ORLEANS CITY PARK IMPROVEMENT ASSOCL4TION


June 30. 2012 and 2011

TABLE A-6 NEW ORLEANS CITY PARK IMPROVEMENT ASSOCIATION |

Schedule of Operating £?q)enses For the years ended Jime 30,2011 and 2010

Payroll Cost of goods soU Contract labor Depreciation Payroll benefits Utilities Repairs and maintenance Insurance Hurricarie Katrina / Gustav Other postretirement benefits Other


2011

$ 4,291,941 1,135305

269,734 2,922388

597,785 536,938 658321 272383

230 344306

2,957,817

$ 13i>87,948

S

S

2010

4307391 932389 207310

2378,103 606,969 417,896 278,113 330.649 23303

351356 Z765,102

12398,781

Increase (Decrease)

$ 84,650 203,016 62224

644,485 (9.184)

119,042 380,408 (58.066) (23;273) (6,850)

192,715

S 1389,167

CAPITAL ASSET AND DEBT ADMINISTRATION

2012 Capital Assets

As of June 30, 2012, the Park's mvestmcnt in capital assets approximated $49 8 million, net of accumulated depreciation. This investment consists pnncipally of buildings and related improvements, ground improvements, and equipment. At June 30, 2012, die Park has constmction in progress of approximately $4 9 million relating to projects tliroughout the Park, including $2.4 million for the new Festival Grounds, $800 thousand for the new golf course and various other facilities and unprovements being constructed totaling $1.3 million.

2011 Capital Assets

As of June 30, 2011, the Park's investment in capital assets approximated $46 9 million, net of accumulated depreciation This mvestmcnt consists pnncipally of buildmgs and related improvements, ground improvements, and equipment At June 30, 2011, the Pork has construction m progress of approximately $6.4 million relating to projects throughout the Park, including $2 5 million for the new Arbor Room Pavilion at Popp's Fountain, $1.2 million in infrastructure around the Great Lawn to service the planned Tn-Centennial improvements and various other facilities and unprovements being constructed totaling $ 2.7 million.

10

NEW ORLEANS CITY PARK IMPROVEMENT ASSOCL\TlON

Managemcnf s Discussion and Analysis, continued

June 30. 2012 and 2011

ECONOMIC FACTORS AND OUTLOOK

The Park continues to rebuild and restore its facilities following Humcane Katrina Due to the humcane, 90% ofthe staff was laid off and virtually all operanons were closed. From 2006 through 2012, several facilities have reopened, mcludmg the Botamcal Garden, Tad Gonnley Stadium, Pan American Stadium, various ball field.*;. North Golf Cour.te and Dnving Range, Storyland, and the Carousel Gardens Amusement Park. As of June 30, 2012 nearly all of the Park's facibties have reopened In October of 2011, the Park opened the Arbor Room at Popp's Fountain, a new facility for catered events. In April of 2011, the Park opened the Pepsi Tennis Center to replace the older smaller facilit)' that was near the site of the future miniature golf facilit>', expected to be open by the summer of 2013. The Park has also hosted several events mcludmg the annual Celebration m the Oaks. Voodoo Festival, and vanous run'walk events.

CONTACrriNG THE PARK'S FINANCIAL MANAGEMENT

This financial report is designed to provide our patrons and other interested parties with a general overview ofthe Park's fmances and to demonstrate the Park's accountabilit>' for the money U receives. If you have questions about this report or need additional financial information, contact the New Orleans City Park Improvement Association at (504) 482-4888

11

NFW ORIT \NS CITY PARK IMPROVEMKNT ASSOCIATION

Statementsof Net Assets

Assets

Current assets Cash (note 2)*

Unrestncted Restncted

Total cash and cash equivalents (note 2)

Investments substantially restncted (note 2) Investments with Louisiana Asset .Management Pool (note 2)

Receivables (less allowance for doubtful accounts). Friends of Cit> Park Federal grant receivable Slate of Louisiana Other

Inveniones

Prepaid expenses and other assets

Total current assets

Invesiments held at the Greater New Orleans Foundation (note 2) Capital assets, net (note 3)

Total assets

Liabilities and Net Assets

Current liabilities:

Accounts payable - trade Other liabilities Accmed salaries Deferred income (note 4) Insurance payable

Due to other govemments (note 5) Accrued vacation leave

Total current liabillues

Long-term liabiliUes

Other postretirement benefits

Total liabilities

Net assets

Invested in capital assets Restncted Unrestricted

Total net assets

2012 2011

S 505,796 242,963

748,759

27,909

2,165,422

264 526,687

812,497

353,948

126,740

34,699

4,796,925

2,140,742 49,816,820

$ 56,754,487

S 221,974 156,299

378,273

27,909

2,218,977

24.101

420,250

990,222

455,021

108,067

45,962

4,668,782

1,271,828 46,853.157

$ 52.793,767

S 1,253,140 S

75,421

130,073

827,689

-414,514

300,033

867308

62,923

84,035

943,057 194,028

707,112

285.212

3,000,870

1,725,900

3.143,675

2.050,575

4,726,770 5.194.250

49,816,820 2,367,005 (156,108)

46,853,157 1,583.387 (837,027)

52.027,717 47,599.517

$ 56.754,487 S 52.793.767

See accompan>mg notes to financial staiemcnis

-12 -

NEW ORLEANS CITY P\RK lAtPRQVEMRNT ASSOCIATION

StalementN of Changes in Net Assets

For the vctirs ended June 30. 2012 and 2011

2012 2011

Operatmg revenues Amusements, concerts and other events Concessions, calenng, and restaurant revenue Golf operations Horticulture, grounds and pavilion Stadium rentals and concessions Tennis fees and shop sales

Total operatmg revenues

Operating expenses-Amusements, concerts and other events Concessions, catering, and restaurant expense Depreciation Oeneral pork Golf operations Horticulture and grounds Stadium Tennis Humcane Katnna loss Postretirement benefits expense


Kei operating loss

Non-operating income (expense) Donations Interest income Stale revenue Lease revenue Insurance claim revenue Other revenue Other expense

Total non-opcraimg mcome

Changes m net assets before capital contributions

Capital contnbutions

Changes m net assets after capital coniributions

Net assets at be 'innmg of year

Nel assets at end uf >ear

$ 3,700.536 $ 3,813,133 1.610.764

671,410 777,921 383,943

10,957,707

1,814,407 2,950,270 3,181.606 4,094,403 1,341.074

861,015 703,819 285,922

-(324,675)

14,907,841

(3,950,134)

1,142,241 25,149

2.065.326 120,795 801,606 82.154

(38.164)

4,199,107

248,973

4.179,227

4.428,200

47.599,517

$ 52,027.717 :

: 3,727.371 2,702,718 1.448,729

653,986 639.903 237,814

9,410.521

1,685.000 2,314,390 2,922,588 3,946.964 1,235,617

751,876 571,064 215.713

230 344,506

13,987.948

(4.577,427)

406.190 22,230

2.152,120 123,660

-429,326

(394,463)

2.739,063

(1,838.364)

9,897,253

8.058.889

39,540.628

5 47,599,517

See accompanymg notci to fmancial statements

13

N E W O R I . F A N S C r r V P A R K IMPROVFMF.Vr A S S O O A T I O N

Sln(cmcntsofCnshno>^5

For rhe years ended fiirtc 30.2012 nnil 2011

2012 !0I1

Cash flosvi from opcFuling aclis'Uiej

Cflsh received from user f:xs and other park activities

Cash psyments to suppliers for [loo^ and scrs'ices

Cosh payments to employees for iev* ices

Net cash used ui upcnOing activiues

Cash Hows &Din noncapital and related financinB activities.

Cash received from Stile of Louisiana

Cash icccivcd fiom daiialiuns

Cosh received from Iccsc revenue

Net cash provided b> noncapital financing aaivmcs

Cash flows i&om capital and related Hnancmg acUvUics

Conlnbulsd by olhen for capital im,nrnvenKnt;

Acquisition and conscrucuon of cap.tal assets

Kei cash used in oapiial and related

financing accivtlics

Cash flows from investing activities

Inceresc received on mvestmcnts

Insurance claim proceeds

Other revenue

Net cash provided by mvcsting activities

Net increase in cash and cash cquualcnts

Cosh and cosh equivalent at begmning of the year

Cash and ca^h equivalents at end ofthe year

Reoonnlmtion of cash and cosh equivalents

C u h

Investments subsinntiaily restncted

IiivcslmcDts with Louisiana Asset Management Pool

Reconciliaiion of net opsTaiing loss to net cash used in

opaating activities are as lollosvs

Operating loss

Adjuslmcnis to reconcile net Qperoting lass to nel

cash used in operating activities

Dcprcctaiion

Increase in receivables

(Incicasc) decrease in mvcntoncs

Decrease in prepaid expenses and other assets

hiceasc (decrease) m trade payables and insurance pa>3ble

lac tase (decrease) in accrued liabilities and other liabilities

Inc.case (decrease) in dcfared income

Net cash used in operating activities

Tsoncash investing, capital and tmancmg activities

Contributions to GNOF

In kind capital omtributionii

See accompanvmg notes lo financial •staiemcnis

$ 10,834.182 $ 9.229.0CW

(6,7<13,]61) (5.355,672)

(5397J51) (4.972,280)

^1^06,130)

2,198.584

337^25

120,795

2.656.704

3.445.569

(5324.122)

(1.878^33)

10.184

801,606

33.120

844.910

316.931

2.625.159

% 2.942.090

$ 748,759

27,909

2,165.422

S 2.942.090

(1,098,948)

2,386,548

398,090

123.660

2,908.298

5.215.077

(6.930.805)

(1.715.728)

22.230

-64,561

86,791

180.413

2.444.746

S 2.625.159

S 378.273

27,909

2.218.977

S 2,625.159

$ (3.950,134) $ (4,577.427)

3,181,606

(8.137) (18,673) 11,263

38,679

(445.546)

(115,368)

2.922.588 (212.175)

8.373 441021

<62.610)

350.424

30,658

(1.306.130)

804,916

804.756

s

s s

11.098.948)

8.100

4,982.407

14-


NOTES TO FLNANCUL STATEMENTS

(1) SummarY' of Significant Aceounling Policies

The State of Louisiana legislature passed Act 84 of 1 $70 which established a public park in the Cit>' of New Orleans (the Cit>') and created the New Orleans Park Board of Commissioners. By Act 87 of 1877, the Board was abolished and the powers and dulies were transferred to the City Council of New Orleans

In 1896, Act 84 of 1870 was repealed and Act 130 gave recocniTion to an organization called the "New Orleans Cit>' Park Improvement Association" (the Park), an agency of the State, which was to manage and supervise the City*s park.

Act 865 of 1982 transferred the Park to the State Department of Culture, Recreation and Tourism. The Park shall be used for park, educational and cultural purposes

(a) Reporting Entity

For financial reportmg purposes and in accordance with Govemmental Accounting Standards Board's definition of a reporting entit>% the Park has only one fund, an enterprise fund, which accounts for all assets, liabilities and operations ofthe Park^ and, as such, is considered a primary govemment

Ofthe 36 authorized Board members, 13 are appointed by various govemmental units and nonprofit organizations. The remaining board members serve limited staggered terms and are appointed by the current Board members of the Park The Park's Board members have decision-m^ng authority over the activities ofthe Park including: the power to designate management, the ability to significantly mfluence operations and primary accountabilit>' for fiscal maners. The Park has no special fmancial relationships with any other govemmental unit and is responsible for its own debt and surpluses and deficits.

(b) Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The accounting policies ofthe Park conform to accounting pnnciples generally accepted in the United States of America as applicable to governments The go\ermnent-wide and proprietary fund financial statements are reported u<ting the economic resources measurement focus and the accmal basis of accounting. Revenues are recorded when eamed and expenses, excludmg depreciation and amortization, are recorded when a liability is incurred, regardless ofthe timing of related cash flows The Park has no govemmental or fiduciary funds. ITie Park uses fund accounting to report its financial position and results of operations. The Park's accounts are organized into a single proprietar>' ftind.

The enterpnse fund (a proprietary fund) is used to account for operations (a) that are operated in a manner similar to pnvate business where the intent ofthe governing body is that ^ c cost (expense, including deprecation) of providing goods and services to the general public is fmanced or recovered prunarily through user charges or (b) where the governing body has decided that the periodic detemiination of revenues earned, expenses mcurrcd and'or changes in net assets is appropnate for capital mauitenance.

15

NEW ORLEANS CITY PARK liVfPROVEMENT ASSOCIATION

NOTES TO FINANCIAL STATE^TENTS

(1) Summary of Sisnificant Accounting Policies (continued)

The Park's principal operatmg revenues are the fees received for ser\'ices. The Park applies all applicable FASB pronouncements issued on or before November 30, 1989 in accountmg for its operations unless those pronouncements conflict or contradict GASB pronouncements.

(c) Investments

Investments are stated at fair value based on quoted market prices. If quoted prices are not available, fau* value is estimated based on similar secunties Louisiana Revised Statutes authorize the Park to invest in bonds, treasury notes, certificates or other obligations ofthe United States, or time certificates of deposit m state banks organized under Louisiana laws and national hanks having pnncipal offices in the State All investment income includmg changes m the fau* value of the investments is recognized in the Statements of Revenues, Expenses, and Changes m Net Assets.

f(9 Inventories

Inventories, consisting prunarily of gift shop, concession, and catering supplies, are valued at cost, which approximates market, using the weighted average method

fe) Capital Assets

Capital assets are stated at historical cost Contributed assets are recorded at fair market value at the time received. An item is classified as a capital asset if the individual cost is SI .000 or greater and has a useful life iu excess of 1 year Depreciation is provided usmg tlie straight-lme method over the estimated useful lives.

(ft Vacation Leave

The Park pcmiiits employees a limited amount of eamed but unused vacation benefits not to exceed 300 hours, which will be paid lo employees upon bcpaniUon from Park service.

(g) Net Assets

The Park classifies net assets into three components invested in capital assets, net of related debt; restricted; and unresnicted. These components are defined as follows*

Invested in capital asset*; - This component of net assets consists of capital assets, net of accumulated depreciation. As of June 30, 2012 and 2011, the Park did not have debt related to capital assets

Restncted - This component reports those net assets with cxtcmally imposed constraints placed on their use by creditors, grantors, contributors, or laws or regulations of other govemments or constraints imposed by law through constitutional provisions or enabling legislation

Unrestricted - This component reports net assets that do nol meet the dcfmition of either of the otlier two components

-16-

NEW ORLEANS CITY PARK IMPROVEMENT ASS0CL\T10N

NOTES TO FINANCIAL STATEMENTS

(1) Summary of Significant Accounting Policies (continued)

(h) Cash flaws

For purposes ofthe statement of cash flows, only cash certificates on hand and on deposit and mvestments having an initial term of three months or less are included in cash and cash equivalents.

(i) Allowance for Doubtful Accotuits

The allowance for doubtful accounts is based on prior years expenence and management's analysis of possible bad debt<; Accounts receivable considered uncollectible are charged agamst the allowance account in the year they are deemed uncollectible No allowance for doubtful accounts was recorded at June 30,2012 and 2011

Q) Deferred Income Deferred income represents resources the Park ha.s received, but not yet earned, such as federal grant funds received pnor to the mcunence of qualifymg expenditures, cash deposits received as prepayments from customers on catering events and birthday parties, or prepaid rental revenue.

(k) Reclassifications Certam accounts m the 2011 fmancial statements have been reclassified to conform to the current year presentation.

(2) Cash, Cash Equivalents, and Investments

The following are the components of the Park's cash, cash equivalents and investments at June 30, 2012 and 2011

2012 2011 Current

Cash in banks Certificates of deposit Investments with Louisiana Asset Management Pool

Long-term: Investments heU at Greater New Orleans Foundation

$ 748,759 27,909

2,165.422

2,140.742 $ 5,082,832

S

$

378;273 27,909

2,218.977

1.271,828 3,896,987

17

NEW ORLEANS CITY PARK CVCPROVEMENT ASSOCLVTION


(2) Cash, Cash EquK-alents> and Investments (continued)

Restricted cash and investments as of June 30, 2012 and 2011 are as follows.

2012-Ribet Fund Greater New Orleans Foundatbn Capital funds received from private donors

2011: Ribet Fund Greater New Orleans Foundation Capital funds reccK^ed from private donors

Restricted Cash

$

242,963 $ 242,963

$

283,650 J 283,650

Restricted Investments

$ 27,909 2,096,133

$ Z]24,042

$ 27,909 i;271,828

$ U99,737

$

$

S

$

Total

27,909 2.096.133

242,963 2367.005

27,909 1,271,828

283.650 1,583387

Custodial Credit Risk - Deposits - Custodial credit risk is the risk that m ±e event of a bank failure, the govemment's deposits may not be retumed to it Stamtes require that the Park's cash and certificates of deposit be covered by federal depository msurance or collateral.

The bank balances of cash and certificates of deposit, as reflected by the banks' records totaled Sl,062,299 and S384,968 at June 30, 2012 and 2011, respectively. The Park's bank balances and certificates of deposits at year-end were covered by federal depository insurance or by collateral held by the Park's custodial bank in the Park's name.

Investments - Statutes authorize the Park to invest in obligations ofthe U.S. Treasury, agencies, and instrumentalities, commercial paper rated A-l b> Standard & Poors Corporation or P-1 by Moody's Commercial Paper Record, repurchase agreements, and the Louisiana Asset Management Pool (LAMP)

L.\MP is administered by LAMP, Inc, a non-profit corporation organized under the laws ofthe state of Louisiana Only local govemment entities having contracted to participate m LAMP have an mvestmcnt interest m lis pool of assets. The primary objective of LAMP is to provide a safe enviromuent for the placement of public funds in short-term, high quality investments The LAMP portfoho mcludcs only securities and other obligations in which local govemments m Louisiana are authorized to invest in accordance with LA-R S 33*2955 LAMP is a 2a7-like investment pool. The following facts are relevant for 2a7 like investment pools.

• Credit nsk. LAMP is rated AAA by Standard & Poor's.

• Concentration of credit risk Pooled investments are excluded from the five percent disclosure requirement

18-

NEW ORLEANS CITY PARK IMPROVEMENT A S S O C L A T I O N


(2) Cash. Cash Equivalents, and Investments (continued)

• Custodial credit risk' LAMP participants' investments in ihe pool are evidenced by shares of the pool. Investments m pools should be disclosed, but not categorized because they are not evidenced b)' secunties that exist in physical or book-entry form The Park's investment is with the pool, not the securities that make up the pool; therefore, no public disclosure is required.

• Interest rate nsk: LAMP is designed to be highly liquid to give its participants immediate access to their account balances. LAMP prepares its own interest rate risk disclosure using the weighted average maturity (\V AM) method The W AM of LAMP assets is restncted lo not more than 60 days, and consists of no securities with a matunty in excess of 397 days The WAM for L/\MPs total mvestments is 53 days as of June 30, 2012.

• Foreign currency nsk: Nol applicable to 2a7-like pools.

The investments in LAMP are stated at fair value based on quoted market rates. The fair value is detemimed on a weekly basis by LAMP and the value ofthe position in the external investment pool is the same as the net asset value ofthe pool shares.

LAMP, Inc. is subject to the regulatory oversight ofthe state treasurer and the board of directors LAMP is not registered with the SEC as an mvestmcnt company.

As of June 30, 2012 and 2011, the Park had investments totaling $2,140,742 and $1,271,828, respectively, in the Greater New Orleans Foundation (GNOF) GNOF investments are held in a donor mvestmcnt pool which is not categorized under GASB Codification Section 150.164 because investments are not evidenced by securities that exist in physical or book cnti> from Investments in GNOF are admmistered by the Greater New Orleans Foundation, a 501(c)(3) public charity. The prunary objective of GNOF is to provide a safe environment for the placement of donor funds m high quality investments. To achieve these objectives, GNOF's mvestmcnt portfolio consists of three diversified investment portfolios the money market portfolio, the fixed income portfolio and the equity portfolio.

Investments held at the Greater New Orieans Foundation at June 30 are allocated as follows.

Classification

Money Market Funds

Fixed Income Funds

Equity Funds

Hedge and Other Funds

Total Funds

$

$

2012

42,011

286,126

1.199,651

612,954

2,140,742

$

$

2011

17,620

164,137

747,167

342,904

1,271,828

19

NEW ORLEANS CFTY PARK IMPROVT.MENT ASSOCIATION

NOTES TO FINANCUL STATEMENTS

(3) Capital Assets

The capital assets ofthe Park as of June 30,2012 and 2011 arc as follows

DescriptiOD

Land Land improvements Buildings and improvements FDoed equipment Moveable equipment Construction in progress

2 0 n

S 3.062,144 9,130,102

28.125,590 9.492.261 3,919,927 6,377,291

Additions

$ 1^87,379 4.987,092

244,549 472,698

5,099,482

Deletions

S --

353,770 118,737

6,626,020

2012

S 3.062.144 11.117,481 33,112.682 9.383,040 4,273,888 4.850,753

Estimated useful life

(years)

10-30 10-30 5-20 3-20

Less accumulated depreciation

Capital assets, net

60,107,315

(13,254.158)

12,791.200

(3,181,606)

7,098,527

(452,596)

$46,853,157 S 9.609,594 $ 6,645,931

65,799,988

(15.983.168)

$49,816,820

Construction in progress of $4,850,753 and 56 ,37731 as of June 30,2012 and 2011, respectively, consists primarily ofthe new Festival Grounds, the new golf course and various other facilities and grounds improvements.

The capital assets of the Park as of June 30,2011 and 2010 are as follows:

Description

Land Land inprovements Buildings and improvements Fved equipment Moveable equipment Construction in progress

2010

$ 3,062,144 4^1.456

20,625,812 9,161,755 3,515,792 6,569.334

Additions

$ 4,168,646 7,499,778

330.506 604.135

11.316,381

Deletions

$ ----

11,508,424

2011

$ 3.062,144 9,130,102

28,125390 9.492,261 3.919.927 6,377:291

Bti mated useful life

(years)

10-30 10-30 5-20 3-20

Less accumulated depreciation

Capital assets, net

47,696,293

(10^31,570)

23,919,446

(Z922.S88)

11.508,424

S 37364,723 $ 20,996,858 $ 11,508,424

60.107315

(13,254,158)

$46,853,157

20

NXW ORLEANS CITY PARK IMPROVEMENT ASSOCL\TION


(4) Deferred Income

Deferred income consists ofthe following at June 30,2012 and 2011.

2012 2011

Event deferral Federal ftinds (FEMA) Restricted contributbns

$ 584,726 27.561

215.402

659,407 27,561

256,089

827,689 $ 943,057

(5) Dnc to Other Govemments

Due to other governments consists ofthe following at June 30,2012 and 2011

2012 2011

State of Louisiana Federal (FEMA)

$

414,514 312,649 394,463

414,514 707,112

Included in the federal grant receivable and due to other govemments at June 30, 2011 was $312,649, which the Park received and remitted to the State of Louisiana's Division of Administration on October 5, 2011 to reimburse the State for a portion of the Park's share ofthe construction costs of the Arbor Room at Popp's Fountam. Both the State and the Park are applicants on separate FEMA project worksheets that fiind this project The project is managed by the State of Louisiana's Office of Facility Planning and Control.

The Park received payments on FEM^ project worksheets^ which were reduced by insurance proceeds from the State of Louisiana's Office of Risk Management (ORM). The payments were made by FEMA and ORM prior to the insurance deductibles being allocated and applied to iht damage claims, which resulted m duplicate payment. The Park is workmg with FEMA and ORM to veniy the accuracy ofthe amount owed

- 2 1 -

VEW ORT F ANS CFTY PARK IMPRO\TMENT ASSOCIATION


(6) Operating Leases

The Park leases certam facilities to various lessees under renewable operating lease agreements. These facilities include the cellular tower, the stables, and land to Giristian Brothers School Mmimum future lease receipts as of June 30,2012, are as follows

2013 $ 175.414 2014 139,944 2015 139.944 2016 139.944 2017 131,296 Thereafter 450,500

During the year ended September 30, 2006, the Park extended the lease with Christian Brothers School on similar terms as die exiting lease through September 30, 2020 On March 28. 2012, the Park leased the equestrian facilities to Equest Farms for $4,000 per month through March 28.2022.

(7) Employee Benefit Plans - Deferred Compensation Plan

The Park offers its employees a defened compensation plan created in accordance with Intemal Revenue Section 457 The plan, available to all regular full and part-time Park employees, permits them lo defer a portion of tlieir salary until future years The deferred compensation is not available to the employee or their beneficiary until termination, retirement, death, or an unforeseeable emergency.

The plan is administered by the State of Louisiana (the State). Participants' rights under the plan are equal to those of tlie general creditors ofthe State in an amount equal to the fair market value of the deferred account for each participant The Park contributed S95.043 and $104,483 to the deferred compensation plan in 2012 and 2011, respectively.

(8) Other Postemplovment Benefits (OPEB)

Plan Description

Employees ofthe Park voluntarily participate in the State of Louisiana's health and life insurance plan. The Office of Group Benefits (0GB) provides medical and life msurance benefits to eligible retirees and thcu" beneficiaries. Participants are eligible for rctu-cc benefits if they meet die retirement eligibility as defined in the applicable retirement system and they must be covered by the active medical plan immediately pnor to retirement The postemploymcnt benefits plan is an agent raultiple-emplover defmed benefit OPEB plan Louisiana Revised Statute (R S ) 42 801-883 provides the authoritv' to establish and amend benefit provisions ofthe plan. 0GB does not issue a publicly available fmancial report; however, the cntit)* is mcluded m the Louisiana Comprehensive Annual Financial Report (CAFR)

-22



(8) Other Postcmplovment Benefits (OPEB) (continued)

Funding Policy

The contribution requirements of plan members and the Park are cstabhshed and may be amended by R S 42 801-883 Employees do not contribute to their postemplo>Tnent benefits cost until they become retirees and begm receiving those benefits The retirees contribute to the cost of retu^e healtlicare based on a service schedule. (Tontribution amounts vary depending on what healthcare provider is selected from the plan and if the member has Medicare coverage. 0GB offers three standard plans for both active and retired employees* the Preferred Provider Organization (PPO) plan, the Exclusive Provider Organization (EPO) plan, and the Health maintenance Organization (HMO) plan. Retired employees who have Medicare Part A and Part B coverage also have access 10 two OGB Medicare Advantage plans - one HMO plan and one private fee-for-service (PFFS) plan, offered by two companies Depending upon the plan selected, during fiscal years 2012 and 2011, employee premiums for a smgle member receivmg benefits ranged from $51 to $102 and $49 to $93 per month, respectively, for retiree-only coverage with Medicare

The plan is currently financed on a pay-as-you-go basis, with the Park contnbutmg $129 to $289 and $124 to $262 per month for retiree and spouse coverage for fiscal years 2012 and 2011, respectively,

OGB also provides eligible retuees Basic Term Life, Basic Plus Supplemental Term Life, Dependent Term Life and Employee Accidental Death and Dismemberment (AD&D) coverage, which is underwritten by The Prudential Insurance Company of Amenca The total premium is approximately $1 per thousand dollars of coverage of which the employer pays one half of the premium. Maximum coverage is capped at S50.000 with a reduction formula of 25% at age 65 and 50% at age 70. with AD&D coverage ceasing at age 70 for retirees.

Annual Other Postenq>loyment Benefit Cost and Liability

The Park's Annual Required Contnbution (ARC) is an amount actuanally determined in accordance with GASB 45. The ARC represents a level of fundmg that, if paid on an ongoing basis, would cover normal cost each vear and ainoitize any unfunded actuarial liabilities (UAL) over a period of thirt>* years. A 30-year percentage of projected pa>Toll amortization method with a closed amorUzation period has been used.

The total ARC for fiscal years 2012 and 2011 is as set forth below

2012 2011

Normal cost $ 229,900 $ 294,700 30-vear UAL amortization amount 77,400 97.000 Annual required contribution $ 307300 $ 391,700

23-

NEW ORLEANS CITY PARK IMPROVHEMENT ASSOCLVTfON

NOTES TO FINANCLVL STATEMENTS

(8) Other Postcmplovment Benefits (OPEB) (continued)

Tlie following schedule presents the Park OPEB obligation at June 30, 2012 and 2011 '

2012 2011

Beginning net OPEB obligation

Annual required contribution Actuarial adjustment Interest on net OPEB obligation ARC adjustment OPEB cost Contributk>ns made (retiree premium) Change in OPEB obligation

Ending net OPEB obligaikm

$ 2,050,575 $

307^00 (577,359)

82,023 (118,585) (306,621) (18,054)

(324,675)

S 1,725,900 $

1,706,069

391,700 -

68,243 (98,663) 361,280 (16,774) 344,506

2,050i75

Using the pay-as->ou-go method, the Park contributed 4.6% of the annual post-employment bene^ts cost dunng fiscal year 2011. The axmual post-employment cost was negative for fiscal year 2012.

Funded Status and Funding Progress

Durmg fiscal years 2012 and 2011, neither the Park nor the State of Louisiana made contnbutions to Its postemploymcnt benefits plan trust Durmg fiscal years 2012 and 2011, the plan did not establish or ftmd a trust Since the plan was not established or funded, the Park's entire actuarial accmed liability of $1,725,900 and $2,156,600 was unfunded at June 30, 2012 and 2011, respectively

The funded status ofthe plan, as determmcd by an actuary is as follows

2012 2011

Actuarial accrued liability (AAL) Acniarial value of plan assets Unfunded actuarial accrued liabilit>' (UAAL)

$ 1,725,900 $ 2,156,600

$ 1,725,900 $ 2.156,600

Funded Ratio (actuarial value of plan nel assets / AAL) 0% 0% Covered payroll $ 1.836,500 $ K809,100 UAAL as a percentage of covered pa>Toll 94% 119%

-24


NOTES TO FINANCLiL STATEMENTS

(8) Other Pcstcmplovmcnt Benefits (OPEB) (continued)

Aciuaria! Methods and Assumptions

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events fer into the ftiture. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regardmg the funded status of the plan and the annual required contributions of the employer are subject to cominual revision as actual results are compared with past expectations and new estimates are made about the funire. The schedule of funding progress, presented as requued supplementary information m the State of Louisiana's CAFR, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuanal accrued habilities for benefits.

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the t>'pes of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that pomt The actuanal methods and assumptions used mclude techniques that are designed to reduce short-term volatility in acniarial accrued liabilities consistent with the long-term perspective ofthe calculations.

In the July 1, 2011 and 2010, OGB acmanal valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions mcluded a 4% investment rate of return and initial annual healthcare cost trend rate of 7.5% and 8 0%, respectively for pre-Medicarc and Medicare eligible retirees as of July 1,2011 and2010, scaling down to ultimate rates of 5% per year TheRP 2000 Mortality' Table was used m making actuarial assumptions Retirement rate assumptions differ by employment group and date of plan participation. The Park's unfunded actuarial accmed liability is being amortized as a level percentage of projected payrolls on an open 30-year basis. The remainmg amortization period at June 30,2012 and 2011, is 25 and 26 years, respectively

(9) Management Agreements

On June 11, 2008, the Park entered mto a management agreement with Billy Casper Golf (BCG). As part of the management agreement, BCG provides certain procurement functions to and for the benefit of the Park, including solicitation of proposals for certain operations, management and maintenance responsibilities in regard to the facilities and related golf services under the supervision of the Chief Executive Officer and Board of Commissioners of the Park. The agreement term is from July 1, 2008 to December 31, 2012, unless terminated according to the cancellation provisions ofthe agreement.

(10) Federal Grants

The Park received federal grants in previous years that are subject lo federal examination that may rcsuhmaliabihtv'.

- 2 5 -

Schedule 1


Schedule of Funding Progress for Louiiiana'i State OPEB Plan

Last Three Years

Plan Year

2012 2011 2010

Actuarial Valuauon

Date

7/1/2012 7/1/2011 7/I.'2010

Actuanal Value of

Assets (a)

S

s s

Actuarial Accrued

Liability (AAL) - Eniiy Age

(b)

$ l,725,Si(>0 $ 2,156.600 S 2.453.400

Unfunded AAL (UA/VL)

(b-a)

$ 1,725,900 $ 2,156,600 $ 2,455,400

Funded Ratio

(a^)

Q(y/o

om 00%

Covered Pa>Toll

(c)

S 1.836,500 S 1.809,100 S 1,598,200

UAALasa Percentage of

Covered Payroll Kb-aVc]

94 0% 119 2% 153 6%

Sec accompanying independent auditors' report.

16-


Schedules of Oriernting Expenses

For the vears ended .Time 30.2012 and 2011

Schedule 2

2012 2011

Administrative

Advertising

Contract labor

Contract services

Cost of goods sold

Depreciatioa

Fuel

Golf operations

Hurricane Katnna

Insurance

Master Plan

Other

Other postretiremen! benefits expense

Payroll

Payroll benefits

Rentals

Repairs and mamtenance

Special events

Supplies

Telephone

Uniforms

Utilities

Operating expenses

s

s

476,313 $ 88,632

348,935 694,173

1,456,796 3,181,606

82,576 1,340,882

-278,971

5,515

91,469 (324,675) 4,779.685 678,325 32,036

603,204 43,839

483.862 12,431 9,957

543,309

14,907,841 $

288,129 52,414

269,734

687.357 1,135,305 2.922,588

63.450 1,235.372

230 272,583

6,630

143,258 344,506

4,291,941

597.785 53,211

658,521 43,370

307,807 64,992 11,827

536,938

13,987,948

See accompanying independent auditors' report

27-

V


SINGLE AUDIT REPORT

JUNE 30.2012

I j a i M Postlethwaite MSSMM & Netterville

A Profemetnol Aceounling Corpornhon

/,\vi>v p-ltp*l t-Ofll

NEW ORLEANS CITY PARK IMPROVEMENT ASSQCL4TION

Table of Contents

Page

Report on Internal Control over Financial Reporting and on Compliance And Other Matters Based on an Audit of Financial Statements Perfonned in Accordance With Government Auditing Standards 1

Report on Comphance with Requirements ITiat Could Have a Direct and Matenal Effea on each Major Program and on Intemal Control Over Compliance in Accordance With OMB Circular A-l 33 3

Schedule of Expenditures of Federal Awards 5

Notes to Schedule of Expenditures of Federal Awards 6

Schedule of Findmgs and Questioned Costs 7

• U a i ^ l Postlethwaite l a S a l & Netterville

^ I'li.le ii^(i<j. Ac^Q'j'.l '\\3 Co ni- iuic Ai cci;i;dCM.v3i:ii "il-ciocIC tn. ';! V L'i'it«J i n w

Av/w^ pncpc: com

REPORT ON INTERNAL CONTROL OVER FINANCLAL REPORTING AND ON COMPLIANCE AND OTHER ^UTTERS BASED ON AN AUDIT OF FIN/\NCL\L STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

The Board of Commissioners New Orieans City Park Improvement Association

Wc have audited the fmancial statements of the New Orleans City Park Improvement Association (the Parle) as of and for tlie year ended June 30, 2012, and have issued our report thereon dated December 17, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to fmancial audits contained m Government Auditing Standards, issued by the Comptroller General ofthe United States

Intemal Control Over Fmancial Reporting

Management of the Pork is responsible for cstablishmg and maintaining effective intemal control over financial reporting Tn planning and pcrfomiing our audit, we considered the Park's intemal control over financial reporting as a basis for designing our auditing procedures for the ptupose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness ofthe Park's intemal control over financial reporting Accordingly, we do not express an opinion on the effectiveness ofthe Park's mtemal control over Rnancial reporting.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of perfomiing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combmation of deficiencies, m mtemal control, such that there is a reasonable possibility that a matenal misstatement ofthe entity's financial statements will not be prevented, or detected and corrected on a timely basis

Our consideration of mtemal control over fmancial reporting was for the limited purpose descnbed in the first paragraph of this section and was not designed to identify all deficiencies in intemal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies m internal control over financial reportmg that wc consider to be matenal weaknesses, as defmed above.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Park's financial statements arc fi cc of material misstatement, we performed teste of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, \ve do not express such an opinion The

JGll: Floor - EneHj\' Cenrre • 1 lUCl Poyriras St'ee- • Ncv Orleans, LA 70163-3000 • '\ i:\ 501 569 2973

OncGd ler a Blvd.SuiU-2100 • Vlet^rne LA 70001 • T-i 50^837 59^0 • Fax 504 334 3600

lesults of oui tests disclosed no instances of iioncompliduce ui olliei inaltcis that arc rcquiied to be reported undei Government Auditiniii Standards

We noted certain matters that we lepoited to management of tlie Park, in a sepaiatc Icttci dated Decciiibci 17.2012

This icport IS intended solely for the infonnation ofthe Park, the Paik's management, federal, state and city awarding agencies, and the Louisiana Legislative Auditor and is not intended to be and should not be used by anyone other than these specified parties However, under Louisiana Revised Statute 24 513, this report is distributed by the Legislative Auditor as a public document

^ /

New Orleans, Louisiana December 17,2012

-2

P&N

l l S f S i Postlethwaite ^ ^ ^ * & Netterville

• Frclci.-:jni / ic^u i l l g ' .o :i "Clcn fivtyr.if.i 0H> f , .n :^ir IJK'I "" IIIA\ r: [Ii0 Ud'"^ ' 'iilai

REPORT ON COMPLUNCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE FN ACCORDANCE

WITH OMB CmCULAR A-133

The Board of Commissioners New Orleans Cit>' Park Improvement Association

Compliance

We have audited the compliance ofthe New Orleans City Park Improvement Association (the Park) with the t>'pes of compliance requirements described in the U S Office of Management and Bidget (OMB) Circular A-133 Compliance Supplement that could have a direct and matenal effect on each of its major federal programs for tlie year ended June 30, 2012 The Park's major federal program is identified m the summary of auditors* results section of the accompanying schedule of fmdings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major federal program is the responsibilit>' of the Park's management Our responsibility is to express an opmion on the Park's compliance based on our audit.

We conducted our audit of compliance in accordance with auditmg standards generally accepted in the United States of America; the standards applicable to financial audits contained m Govemment Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A-133, Audits of States, local Governments, and Non-Profit Organizations Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a du'ect and material effect on a major federal program occurred. An audit includes examming, on a test basis, evidence about the Park's compliance with those requirements and performing such otlier procedures as we considered necessary in the circumstances We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determmation on the Park's compliance with those requirements

In our opinion, the Park complied, m all matenal respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended June 30» 2012

Intemal Control 0\'er Comphance

Management of the Park is responsible for establishing and maintaining elTective mtemal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs In planning and performmg our audit, we considered the Park's intemal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of intemal control over compliance Accordingly, wc do nol express an opmion on the effectiveness ofthe Park's intemal control over compliance.

- 3 -

30th Floor - Energy Ccrui- • 1100 Poydrd5 Suii':\ • Mew Oikcuv^ LA ;U163-J000 • Ic" 50-'l 569 2978

One Gallcrid Blvd , Sjitc 21Cw • fv1cta;ric, LA 70Q01 • TH 50-1 337 5990 • Fax 504 834 3009

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, m the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a t>pc of compliance requirement of a federal program on a timely basis A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in intemal control over compliance, such that there is a reasonable possibility that material noncompliance witli a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.

Our consideration of mtemal control over comphance was for the limited purpose described m the first paragraph of this section and was not designed to identify all deficiencies in intemal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses We did not identify any deficiencies m intemal control over compliance that we consider to be material weaknesses, as defmed above.

Schedule of Expenditures of Federal Awards

We have audited the financial statements ofthe Park as of and for the year ended June 30, 2012, and have issued our report thereon dated December 17, 2012, which contamed an unqualified opinion on those financial statements. Our audit was performed for the piirpose of forming an opinion on the financial statements taken as a whole The accompanying schedule of expendimres of federal awards is presented for the purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations and is not a required part ofthe financial statements. Such information is the responsibility of management and was denved from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accountmg and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the fmancial statements as a whole

This report is intended solely for the information ofthe Park, the Park's management; federal, state and city awarding agencies, and the Louisiana Legislative Auditor and is not mtend^ to be and should not be used by anyone other than these specified parties However, under Louisiana Revised Statute 24:513, this report is distnbuted by the Legislative Auditor as a public document.

New Orleans, Louisiana December 17,2012

P&N

?^.W ORLEANS CTTV PARK T^fPROVE^^ENT ASSOCUTION

Schedule of Exncnditurcs of Federal Awards

For the Vear Ended June 30,2012

CFDA Federal Federal Grantor/Program Title Number Expenditures

y.S, Department of Homeland Security;

Louisiana Office of Homeland Security and Emergency Preparedness Disaster Grants - Pubhc Assistance (Pass-through award) 97.036 $ 124,821

Total U.S. Department of Homeland Security 124.821

U.S. Department of Hoasing and Urban Development:

City of New Orleans Disaster Community Development Block Grant (Pass-through award) 14.228 2,044,936

Total U.S. DcpartmcDt of Housing and Urban DcvelopmeDt: 2,044,936

Total Federal Expenditures $ 2,169.757

See accompanying notes to Schedule of Expenditures of Federal Awards


Notes toSchediileof Expenditures of Federal Awards

For the Year Ended June 30,2012

(1) General

The accompan\ing Schedule of Expenditures of Federal Awards presents the federal grant activity ofthe New Orleans City Park Impro\ement Association. The Park's reporting entity is defmed in note 1 to the financial statements for the year ended June 30, 2012. All Federal financial awards have been mcluded on the Schedule.

(2) Basis of Accounting

The accompanying Schedule of Expenditures of Federal Awards is presented usmg the accmal basis of accounting, which is described in Note 1 to the Park's fmancial statements for the year ended June 30, 2012

(3) Relationship to Financial Statements

Federal awards are included in the statements of changes in net assets as capital contributions.

NEW ORLEANS CTTV PARK L\IPRO\TMENT ASSOCUTION

Schedule of Findings and Questioned Costs

For the Vear Ended June 30,2012

(1) Financial Statements

(a) The type of auditor's report issued unqualified opinion

(b) Intemal control over fmancial reporting*

Material weakness identified. 0g Significant deficiency identiiied not considered to be material weaknesses OQ Noncompliance matenal to financial statements noted no

(2) Federal Awards

(a) Intemal control over major programs

Material weakness identified: nQ Significant deficiency identified not considered to be matenal weaknesses: no

(b) Type of auditor's report issued on compliance for major programs* unqualified opinion

(c) Any audit fmdmgs disclosed that arc requux d to be reported in accordance with OMB Circular A-133, Section 510(a): na

(d) Identification of major programs

• Department of Housing and Urban Development - CFDA No. 14 228 - Community Development Block Grant

(e) Dollar threshold used to distinguish between T>pe A and Type B programs 5300,000

(0 Auditee qualified as a low-risk auditee under Section 530 of OMB Circular A-133: yes

(3) Fmdings Relating to the Financial Statements Reported in accordance with Govenvnent Auditing Standards, none

(4) Findmgs and Questioned Costs relating to Federal Awards none

i i S l A i Postlethwaite ^*^^^*^"& Netterville

A Pri>(esiion>ii Arcounriny Cniporul ion At 'oc io tcd Offices m Princip<il C i l ic i ot iho United Slatoi

WWW pncpa com

December 17,2012

The Board of Commissioners New Orleans City Park Improvement Association

We have audited tlie financial statements of the New Oi leans City Park Improvement Association (the Park) as of and for the year ended June 30, 2012, and have issued our report thereon dated Decembei 17, 2012 In planning and perfonning our audit ofthe financial statements ofthe Park, we considered intemal contiol as a basis for designing oui auditing procedures for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Park's intemal control Accordingly, we do not express an opinion on the effectiveness of the Park's internal control

Cuirent Year Comments

None

Status of Prior Year Comments

2011-1 Tennis Court Theft

Obsei'valton

The Paik's procedures did not detect a misappropiiation of cash and checks from its tennis operations in a timely manner totaling $11,712 The Park's policies and procedures were not sufficient to establish preventative controls over receipts of the tennis opeiations Detective controls did not identify the misappropnation in a timely mannei

Recommendation

The Park should implement processes and procedures to determine that cash deposits agree to the amount of cash leceipts recorded in the geneial ledgei on a timely basis In addition, an independent review of the deposit logs should be performed to detect inconsistencies with controls put in place.

Status

Resolved

30th Floor - Energy Centre • 1100 Poydras Street • New Orleans. LA 70163-3000 • Tel 5045692978

One Galleria Blvd, Suite 2100 • Metaine. LA 70001 • Tel 504 837 5990 • ra>; 504 834 3609

The Board of Commissioncis New Oilcans City Paik Impiovcinent Association Page 2 December 17.2012

This report is intended solely lor the information ofthe Paik, the Paik's management, fcdeial, state and city awarding agencies, and the Louisiana Legislative Auditor and is not intended to be and should not be used by anyone other than these specified parties Ho\vcver, under Louisiana Revised Statute 24 513, tins report is distributed by the Legislative Auditor as a public document

Smceiely,

^i&Mi^TlMvig Postlethwaite & Netterville, APAC

P&N

Download - New Orleans City Park Improvement Association · 2020-05-20 · NEW ORLEANS CITY PARK IMPROVEMENT ASSOCIATION Management's Discussion and Analysis, continued June 30. 2012 and 2011

Top Related